GGA.TO
Goldgroup Mining Inc
Price:  
0.03 
CAD
Volume:  
43,300.00
Canada | Metals & Mining
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GGA.TO WACC - Weighted Average Cost of Capital

The WACC of Goldgroup Mining Inc (GGA.TO) is 5.3%.

The Cost of Equity of Goldgroup Mining Inc (GGA.TO) is 7.40%.
The Cost of Debt of Goldgroup Mining Inc (GGA.TO) is 5.00%.

Range Selected
Cost of equity 4.80% - 10.00% 7.40%
Tax rate 6.50% - 10.50% 8.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 6.0% 5.3%
WACC

GGA.TO WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta -0.2 0.52
Additional risk adjustments 2.5% 3.0%
Cost of equity 4.80% 10.00%
Tax rate 6.50% 10.50%
Debt/Equity ratio 2.61 2.61
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 6.0%
Selected WACC 5.3%

GGA.TO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for GGA.TO:

cost_of_equity (7.40%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (-0.2) + risk_adjustments (2.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.